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CST 201 Intro to MIS Is $80,000 Enough ExerciseSuppose you manage the sales and marketing department at a company that generates $100 million in sales—a manufacturer of fireplace inserts and related equipment. Assume you just started the job and that at the end of your second day the corporate operations officer (COO) sticks her head into your office and announces, “I’m in a rush and have to go, but I wanted to let you know that I put $80,000 in the budget for computers for your department next year. Is that OK? Unfortunately, I’ve got to know by the day after tomorrow. Thanks.” How do you respond? You have 2 days to decide. If you agree to the $80,000 and it turns out to be insufficient, then sometime next year your department will lack computing resources and you’ll have a management problem. If that happens, you may have to spend over your budget. You know that cost control is important to your new employer, so you dread overspending. However, if you ask for more than $80,000, you need to justify why you need it. You will need to document the computer equipment and software your department needs, explain why you need it, and estimate how much it will cost.Here is what you know so far:? The IT Department will be upgrading all of your department’s computers to Windows 10 and Office 2016 in the next year. IT has negotiated a site license for these products, and then allocates that license cost to each computer. For your department, you will pay $100 for each computer that uses Office 2016 and another $75 for each computer that uses Windows 10. ? You are not required nor allowed to buy any software for new computers. If the computer comes with software, that software will be destroyed by the IT department’s standard installation process. ? The IT department assesses each computer an annual $950 fee for network, server, and other overhead costs. ? You are required to buy any new computers and equipment from Dell, HP, or Lenovo (Hint use the Business product pages, not Gaming or Personal prices)? You have identified three classes of computer users in your department. The main memory, RAM, and disk storage requirements for each class of user are shown in Figure 4-19. This figure shows the specifications of existing computers as well as the hardware requirements for each class after the upgrade. ? Figure 4-20 shows the job titles of employees in your department, the number of employees of each type, the class of computer they require, and whether they use a desktop or a laptop. (You are a new employee, do not yet have a computer, and can specify your own requirements.) ? A computer can be reassigned to other employees as long as the computer meets the minimum processing requirements. A laptop can substitute for a desktop if a display, keyboard, and mouse are purchased to go with it. CST 201 Intro to MIS Is $80,000 Enough Exercise? Assume that telesales personnel will grow by 10 percent in the next year but there will be no other changes in the number of personnel in your department. ? Ten of the existing class B computers have a maximum main memory of 4GB. The rest of the class B computers have a maximum main memory of 2GB. All of the existing class C computers have a maximum main memory of 4GB.a. Given this data, is $80,000 enough? If not, how much money should be allocated in your department? Write a brief answer documenting your assumptions for your boss.b. Develop a Spreadsheet and use formulas/functions to assist you with this analysis. Remember you will have to give this spreadsheet to your new boss so make it professional. You will also want to save this spreadsheet so that you will have documentation of your decisions. The next time you have to make this decision you will have a record of you analysisFigure 4-19 Hardware Specifications



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